Central Banks


Bank of Japan monetary policy decision and statement for March 2018  

BOJ keeps monetary policy steady – as widely expected 

  • maintains short-term interest rate target at -0.1 pct
  • maintains 10-year JGB yield target around zero pct

Decision on yield curve control made by 8-1 vote, board member Kataoka dissents

BOJ removes phrase
on expected timing for hitting price goal

BOJ quarterly report:

  • Japan’s economy expected to continue expanding moderately
  • Momentum for hitting price goal sustained but lacking steam
  • Inflation likely to accelerate towards 2 pct as output gap improves, inflation expectations heighten
  • Risks to the price outlook skewed to downside
  • Risks to economy balanced for FY2018 but skewed to downside for FY2019

Core CPI expected +1.8 pct in FY2019/20 vs +1.8 pct projected in January

  •  Japan core CPI expected +1.8 pct in FY2020/21
  •  Japan core CPI expected +1.3 pct in FY2018/19 vs
    +1.4 pct projected in January

BOJ deletes mention of time frame for price target in
outlook report

Risks to economy are roughly balanced for fiscal
2018

  • risks to economy in fiscal 2019 are to downside
  • no big change in price forecast for fiscal 2019
  • there are downside risks to prices
  • inflation expectations pose both downside and upside risks
  • consumer inflation moving around 1 pct
  • inflation expectations moving sideways
  • inflation expectations likely to heighten ahead and gradually converge towards 2 pct
  • impact of sales tax hike next year among risks to economic outlook

Kataoka says need to buy JGBs so yield for duration
of 10 years or longer falls further

  • says BOJ should clarify it will ease
    further if domestic factors delay achievement of price target

BOJ’s median real GDP forecast for fiscal 2019/20 at +0.8 pct vs +0.7 pct projected in January

  • median real gdp forecast for fiscal 2020/21 at +0.8 pct
  • median real gdp forecast for fiscal 2018/19 at +1.6 pct vs +1.4 pct projected in January

Quick headlines via Reuters   

 

Well, cast your eye over those quick headline takes …  and if you are thinking like me it looks like the BOJ has managed to get itself even more dovish … 

  • REMOVES TIMEFRAME FOR PRICE GOAL
  • downside risks for the economy and inflation

Yeah … check out the bit I put in CAPS ….

REMOVES

TIMEFRAME

FOR

PRICE

GOAL

Sheesh …. have they given up now?  …. and … Fuggedaboud the talk of exit …

prior to the BOJ announcement there was plenty of data from Japan out earlier:

Japan’s economy is not going along too badly at all. 



Source link

Articles You May Like

Gold sellers are in near-term control, but buyers are not out of the game just yet
White House advisor Conway says it looks like US-China getting closer to deal
Central bank independence must be protected
USDJPY moves back to unchanged despite early stock gains
EURUSD retraces the fall and returns to the topside resistance area and finds sellers

Leave a Reply

Your email address will not be published. Required fields are marked *